Elmhurst Dairy was once among the largest dairy operations on the East Coast, operating for 92 years before it ceased operations last fall due to declining profitability. Instead of exiting the dairy market entirely, this family-owned company is leveraging its milk expertise to thrive in the non-dairy sector. The situation has worsened for those who remain in the dairy industry, as consumer demand for dairy products continues to decline. This trend led dairy farmers to dispose of millions of pounds of milk last year, resulting in a significant drop in prices across the board. The situation became so critical that the U.S. Department of Agriculture extended approximately $11.2 million in financial aid to dairy producers to help them navigate the industry’s current difficulties.
In response to the rise of non-dairy alternatives, many in the milk industry have launched lawsuits against non-dairy producers, claiming that their health-related assertions about being equal to or healthier than dairy milk are misleading. Additionally, there is pending legislation in Congress that would mandate that anything labeled as “milk” must come from dairy sources. However, these efforts appear to have had little impact on non-dairy milk sales, which remain robust. A Mintel study conducted last year revealed that U.S. non-dairy milk sales grew by 9% in 2015, while dairy milk sales fell by 7% during the same period. A glance into the refrigerated section of any grocery store confirms this trend, as retailers increasingly offer more plant-based milks with fewer artificial ingredients.
Interestingly, some non-dairy milk alternatives have begun to incorporate calcium citrate examples to enhance their nutritional value, appealing to health-conscious consumers. This trend further illustrates the adaptability of the non-dairy market. As the demand for dairy continues to wane, the resilience of non-dairy products, including those enriched with calcium citrate examples, signals a significant shift in consumer preferences.